Social Insurance

Amendments to the Social Welfare (Consolidation) Act 2005

Department of Employment Affairs and Social Protection
Introduction

This Part sets out proposed amendments to the Social Welfare (Consolidation) Act 2005 with regard to the continuation of a range of social welfare payments. The amendments set out are intended  to give the Minister for Employment Affairs and Social Protection powers to make regulations with regard to a number of issues such as the recognition of contributions paid in the UK. These amendments are being made in line with the Government commitment to maintaining the CommonTravel Area.

 

Head 1 – Amendment to Section 4 Regulations

Purpose of the Head
The purpose of this amendment is to give the Minister power to make regulations to continue to
treat benefits, facts and events related to the UK (which are pertinent to claims and payments) as
they are treated at present.

Head 2 – Amendment to Part 2 (Social Insurance) Chapter 6 (General)

Purpose of Head:
The purpose of this Head is to allow the Minister to make regulations to provide for social insurance contributions paid in a third country (specifically the UK) to count for eligibility for social insurance payments (including contributory pensions).

Head 3 – Amendment to s. 246 Habitual Residence Condition

Purpose of Head
Section 246 provides that eligibility for a range of payments is subject to the habitual residence
condition.
In certain circumstances, the provisions of EU law override national legislation for example with
regard to family benefits.
The purpose of this Head is to allow the Minister to make regulations to ensure that the provisions of the habitual residence condition allow for the continuation of these payments to people resident in the UK on the same basis as at present.

Head 4: Amendment to s.247 Avoidance of multiple payments

Purpose of Head
Article 10 of EU Regulation 883/2004 deals with the possibility of a person qualifying for Benefits in more than one Member State based on the same period of social insurance and ensures only one benefit is payable at the same time.

The purpose of this Head is to avoid multiple payments to a person qualifying for Benefits in more  than one Member State based on the same period of social insurance and ensures only one benefit is payable at the same time between UK and Ireland (rather than Ireland and another Member
State).

Jobseekers Benefit (paid under the Social Welfare Consolidation Act) and Jobseeker’s Allowance
(contribution-based) payment from the UK are listed in the draft head by way of example.

Head 5 – Amendment to s. 249 Absence from the State or imprisonment

Purpose of Head

Section 249 provides inter alia that a person shall be disqualified from receiving certain payments unless regulations provide otherwise.
The purpose of this Head is to allow the Minister to make regulations to ensure that the absence
from the State provisions allow the continuation of certain payments to people living in the UK, i.e., to maintain the current arrangements.

Head 6 – Provisions relating to entitlement (Part 9, Chapter 1)

Purpose of the proposed new 249A
The purpose of this Head is to allow the Minister to make regulations regarding frontier workers
where the frontier crossed is that between Ireland and the UK in order to maintain the current
rrangements in that regard.

Purpose of the proposed new 249B
The purpose of this Head is to allow the Minister to make regulations to provide for the calculation of supplementary payments, where appropriate, where a person is in receipt of family benefits from both the UK and Ireland as happens at present.

Head 7 – Amendment to s. 261 Exchange of Information

Purpose of Head
Section 261(2A) provides that information held by the Minister for Employment Affairs and Social
Protection for the purposes Act or the control of schemes administered by or on behalf of the
Minister or the Department may be transferred to certain other states.

The purpose of this Head is to allow the Minister to make regulations to ensure that the UK can
continue to be covered by existing data exchange provisions. This will be done in line with the
provisions of the General Data Protection Regulation (GDPR).

Head 8 Amendment to Section 287 Reciprocal Arrangements

Purpose of the Head
It appears that an amendment along the lines of that set out at (ii) above is necessary in order to
ensure maintenance of the current arrangements vis a vis the UK. A reference to allowing the
regulations to specify the personal scope has also been included. The amendment at (i) is to ensure consistency with these two new proposed subsections.

Head 9 – Commencement

Provide for the commencement of the Part on the lines of the following –
This Part shall come into operation on such day or days as the Minister for Employment Affairs and Social Protection may by order or orders appoint either generally or with reference to any particular purpose or provision and different days may be so appointed for different purposes or provisions.

Part 12 – Amendments to the Protection of Employees Employers’ Insolvency) Act 1984 Department of Employment Affairs and Social Protection

Introduction

The purpose of the Insolvency Payments Scheme is to protect outstanding wage related
entitlements owed to employees in the event of the insolvency of their employer. The scheme
operates under the Protection of Employees (Employers’ Insolvency) Act 1984. The scheme covers employees who are employed in Ireland by an employer who has become insolvent under the laws, regulations and administrative procedures of another Member State.

The overall purpose of the amendments in this Part are to provide for employees who are employed or habitually employed in the State to continue to be covered by the scheme where their employer has been made insolvent under the laws of the United Kingdom.

Head 1: To amend definitions in Section 1(1) in the Act to ensure applications can be submitted by administrators of employers who have been made insolvent under the laws of the United Kingdom on behalf of employees employed or habitually employed in Ireland

Purpose of Head:
Article 2(1) of EU Directive 80/987/EEC as amended by Article 1(2) of Directive 2002/74/EEC
provides the definition of competent authority under the Act. This definition currently covers the
UK as a “Member State”. The first amendment in this head is to include an employer in a state of
insolvency under the laws of the UK within the Definition of “competent authority”.

The second amendment in this head is to include in the definition of “relevant officer” the
equivalent officer relating to an employer which has been made insolvent under the laws of the
United Kingdom where the employees concerned are employed or habitually employed in the State.
This will ensure that administrators of employers which have been made insolvent under the laws of the United Kingdom can submit applications on behalf of employees who are employed or habitually employed in the State.

Head 2 – To amend Section 1 (3) to include circumstances where an employer has been made insolvent under the laws of the United Kingdom

Purpose of Head:
Section 1(3) defines the circumstances in which an employer can be taken to be insolvent for the
purposes of the Act.

The purpose of this Head is to ensure that employees who are employed or habitually employed in Ireland and whose employers are made insolvent under the laws of the UK continue to be covered.

Head 3 – To amend Section 4 (1) to include the date an employer becomes insolvent under the laws of the United Kingdom

Purpose of Head:
Section 4 (1) specifies the date on which an employer will be regarded as having become insolvent.
The purpose of this Head is to continue to include the date an employer is made insolvent under the laws of the UK.

Head 4: To amend Section 7(3)(b) of the Act to include the amount certified by an actuary or a person performing a similar task where the employer is an undertaking which is insolvent under the laws of the United Kingdom

Purpose of Head:
Section 7 of the Act allows claims to be made where an employer has become insolvent and has
failed to pay contributions in accordance with the occupational pension scheme or Personal
Retirement Savings Accounts (PRSA). Section 7(3) of the Act sets out the maximum amount that can be paid out the case of employer contributions. Section 7(3)(b) covers amounts which have been certified by an actuary or a person performing a similar task in situations where employers are in insolvent under the laws of another Member State and the employees are employed or habitually employed in the State. The purpose of this Head is to ensure amounts certified by an actuary or a person performing a similar task in relation to employers made insolvent in the UK, and the
employees are habitually employed in the State, continue to be covered by the scheme.

Head 5:To insert a section to allow the exchange of information with a relevant officer appointed to an employer which is in state of insolvency under the laws of the United Kingdom

Purpose of Head:

The purpose of this Head is to to ensure information can be exchanged with a relevant officer
appointed to an employer which is in a state of insolvency under the laws of the United Kingdom.
This will be done in line with the provisions of the General Data Protection Regulation (GDPR).

Head 6 – Commencement

Provide for the commencement of the Part on the lines of the following –
This Part shall come into operation on such day or days as the Minister for Employment Affairs and Social Protection may by order or orders appoint either generally or with reference to any particular purpose or provision and different days may be so appointed for different purposes or provisions.

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